There was a time you were allowed to have less than 3200 in the bank (ie some redundancy) and still get benefits.
What's happened to the CAB, it used to be an effective aid for people having trouble dealing with bureaucracy, I'm guessing it's either been swamped or the structural changes have limited it's impact. I know very little about the changes so i'm guessing here.
That doesn't sound right Space, the decision on when the money should last her too seems to have been plucked out of the air, surely if she can demonstrate that the money doesn't meet even very basic needs the claim should start from the point the money runs out - even by their measures.
What i'm getting at is there a culture of misinformation encouraged by management, to reduce claims, delay claims etc.